- Bitcoin recovers above $7,400 after strongly defending $7,000 key support.
- XBT/USD is nurturing a possible triangle breakout targeting $8,000.
Bitcoin is relatively bullish ahead of the weekend trading session. The shallow recovery follows several days of struggling to defend $7,000 and sustain gains above $7,200. XBT/USD surged briefly on Thursday breaking past the crucial resistance at $7,400. However, the psychological $7,500 resistance was tested but not broken.
In the meantime, Bitcoin is trading at $7,396 above the Exponential Moving Averages (EMA). The EMA 50 on the 1-hour chart is crossing above the EMA 100 in a reflection of the improving technical picture. Besides, the Relative Strength Index (RSI) is back above the average and holding ground at 56. The RSI has brushed shoulders with the oversold twice in December; on Dec 1 and Dec 4.
XBT/USD 1-hour chart
As long as the price stays above the moving averages supported by the increasing bullish volume, Bitcoin is likely to trend above $7,400 and push past the next hurdle at $7,500. Moreover, the formation of a symmetrical triangle suggests that a breakout could catapult Bitcoin above $8,000.
As far as support areas are concerned, Bitcoin is initially supported by the 61.8% Fibonacci retracement level with the last swing high at $7,877 to as swing low of $6,525. Both the EMA 50 and the EMA 100 will provide support in addition to the 50% Fibo at $7,200, $7,000 and $6,800.
XBT/USD Technical Levels
BitMEX index price: $7,411
Volume: $2.2 billion
Open interest: $643 million
RSI: Moving upwards in a reflection of the recovering BTC price.
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